“The decision of whether or not to use the player or product or service is independent of the money committed, because it’s already spent,” Law wrote. “You often see the misunderstanding of sunk costs from people who sign a multiyear contract to use a fitness club, then drag themselves to the gym because they’re spending the money anyway — when the truth is that the money is gone even if they never set foot on a treadmill. The go/no-go decision should have nothing to do with the expense.”

In theory, Law is clearly correct. In practice, baseball executives are not always quick to admit their errors. Not all of them have the job security to act out of conviction rather than self-preservation. And some of them are just plain stubborn.

“Original errors often are compounded when teams are unwilling to acknowledge their initial mistakes by releasing the players in question,” Law wrote. “Roughly one-third of all major league teams have players for the sole reason that they make ‘too much’ money to be released. And that is just plain stupid; there is no greater fool’s errand in baseball than waiting for a player who was never that good in the first place to suddenly earn his pay.”

This is one mistake Josh Byrnes has been able to avoid. During his tenure in Arizona, he twice released players who were owed more than $10 million. Though that’s not necessarily a recommendation, it is revealing.

Better to cut your losses than to be reminded of them on a daily basis.